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Rapid Strategic Planning.ppt by zhaonedx


									Rapid Strategic Planning
 Robert F. Jordan, PE

                        Revision D
    To provide a method for easily creating a useful Strategic
     Plan for any organization.
        Non-Profit Organization
        Academic Institution
        Commercial Business

    To standardize on terminology.

 1- About Strategic Planning
 2- Vision and Values
 3- Define Strategy and Measures
 4- SWOT Analysis
 5- Goals and Objectives
 6- Organizational Structure
 7- Examples
 8- Getting Started
 9- Questions and Answers
 10- Summary Flow Chart            3
Can You Answer These 10 Questions?
   What Is A Strategic Plan?
   What Are The Three Purposes Of A Strategic Plan?
   What Is “Fixed” And What Can Change In A Strategic Plan?
   How Long Should It Take To Create a Strategic Plan?
   Who Is Involved in the Creation of a Strategic Plan?
   Why Do You Need A Vision Statement?
   What Are Examples Of Organizational Structure?
   What Are The Main Components Of A Strategic Plan?
   What Does The Operational Plan Do?
   What Does SWOT Mean and What is its Purpose?            4

 Three-Fold Purpose of a Strategic Plan
    Focus the people of your organization.

    Fulfill the Vision of the organization.

    Ensure the long-term viability (financial, operational,
     personnel) of the organization.

What is Strategic Planning?
   A vision-based process of positioning the organization
    for long-term strength and advantage.

   The process of creating any organization’s four-fold
    destination and alignment plan that includes Vision
    (Why), Strategy (What), Operations (How), and
    Personnel (Who).

   Strategic Planning is Proactive, Tactical Action can often
    be Reactive.
   Top-Down                       Vision

 “VSOP” Model                         Why are you “in the game”? Why
                                       do you exist?
                                  Strategy
Drive     VISION                      What are you going to do to
from      (Why?)                       achieve the vision? What do you
 the                                   need to do to achieve the vision?
                                  Operations
                                      How are you going to carry out
                                       your strategy? How is each
                                       department going to support the
          (How?)      Align
                    from the
                     Bottom       Personnel
          (Who?)       Up
                                      Who is needed in the organization
                                       to carry out the operations? Who
                                       has the necessary skills?           7
Who Benefits from a Strategic Plan?
   The Organization
       There is clarity of purpose. Uncertainties and
        distractions are minimized when the plan is clear.

   Governing Boards
       The organization’s direction aligns with that desired
        by the governing board and they know it.

   Investors
       Assurance that you’ll be viable (plan, personnel,
        metrics) to carry out the vision.                       8
    Understanding the Strategic Plan
   The vision is the advertisement of the identity of the
    organization; it communicates the reason it exists.
        Microsoft: To have every computer running Microsoft software.
        Dallas Cowboys: To win the Super Bowl in five years.

   The advantage exploited to reach the vision is the strategy.
        MS: Own the operating system, then follow with applications software
        Dallas Cowboys: Use fast players, trade one marquee player for many
         quality players, use high draft position to get top quarterback

   The operational plan defines the assets to get there.
        MS: Need offices, computers, parking, access roads, infrastructure...
        DC: Need practice facility, stadium, travel agency, training center...   9
Understanding the Strategic Plan (cont.)

   The personnel are the skilled adults required to get there.
        MS: Need managers, engineers, software geeks, original thinkers…
        DC: Need new winning coach, trainers, travel agents, scouts...

    Strategic Plans can and will change (due to environmental conditions, etc.), that is,
    the specific strategies to fulfill the vision can change as required, but the fundamental
    vision and values of the organization remain unchanged.

    Today Microsoft is on virtually every computer - home and business. They bought
    DOS and created Windows. The Dallas Cowboys won in their 4th and 5th year under
    new ownership - and their 7th year as well! They drafted high and they drafted fast,
    smart players. They also traded Herschel Walker for numerous quality players. 10
Strategic Planning Leadership Team
    Requires 100% of your most influential leaders.
    Everyone has an equal voice - no titles...


     CEO       Director     Manager      Department Head   Committee Head

Profile of a Strategic Planning Team Member
   Positive Attitude and Technology or Business Capable
   Get-it-done Record; History of Positive Contributions
   Team Player; Able to Compromise As Appropriate;
    Understands Chain of Command
   Forward Thinker; Big-picture Mindset
   Strong Communicator - Graphs, Trends, Analysis
   Able to Focus on “Why” Rather Than “How”
   Thinks Strategically (Conceptual) Vs Tactical (Execution).
   Has Earned the Respect of the Team Members
   Can Bring Something of Value to the Table
    (If you have a team member who doesn’t carry out
    assignments and only wants to change what others have
    created, then that person doesn’t belong on the team.)     12
Strategic Plan Elements
   Vision and Values
   Define Strategy and Measurements
   SWOT Analysis
   Goals and Objectives
   Organizational Structure
      (Org. Chart, Position Descriptions, Individual Goals,
       Department Plan)
    Shown above is a suggested order of occurrence. In reality there is
    often overlap in the creation of these elements during the building of
    the Strategic Plan. Some organizations will have some pieces already
    in place when they begin their Strategic Plan. Use what works!         13

 Vision Statement
     What does the organization want to become or be known
      for in the future?

     The best Vision Statements are one sentence, easily
      understood and inspiring.

     Why a Vision Statement? It has been said that
      everything is built twice. First it is built in the mind’s eye,
      then it is physically built. If we first imagine what our
      organization is striving to become, we can then focus all
      of our work to align with this Vision.
Sticking with the Vision
    Famed NFL football coach George Allen, upon taking
     the head coaching job of the Washington Redskins,
     eliminated the organization’s $3,000 annual expense for
     sending out Christmas cards.

    Why? Over howls and cries he said “Our purpose is to
     get to the Super Bowl and mailing Christmas cards does
     not support that goal. I’ll use the money to buy
     shoulderpads or blocking sleds.”
     Two-time NFL coach of the year George Allen never had a losing team in 12
     NFL seasons, though he inherited teams that hadn’t had a winning record in a
     decade. His team reached Superbowl VII, but narrowly lost to Miami 14-7 in
     Miami’s perfect season.                                                        15
Vision Statements from History
    A challenge was issued in 1961 by President John F.
     Kennedy: “To put an American on the moon and return
     him safely by the end of the decade."

    "I want to have a computer on every desk and in every
     home, all running Microsoft software." - Bill Gates

     Three of the most famous speeches in all of American history were
     brief: Lincoln’s Gettysburg Address (272 words - 2 minutes); F.D.R.’s
     Pearl Harbor (488 words - 7 minutes , and M.L. King Jr.’s I Have a
     Dream (1550 words - 16 minutes).
    Articulates the ethics, principles, and disposition of the
     organization and its leadership.

    Becomes the boundaries within which all decisions are

    Defines the identity of the organization.

    Should be short and sweet - so they can be remembered.

     The Vision and Values are fundamental to the organization.

 Pulling it all Together
     The Vision is your guide.
     The Organizational Structure (present and potential) is
      your enabling mechanism.
     Each department/functional group should have their own
      Mission Statement
        The Mission Statement is what their group is going to
         do to support the Vision of the organization.
        Like as the Vision, the Department Mission should be a
         crisp, one sentence statement of purpose.
Strategic Priorities
    They are developed from the vision and mission, they
     are evaluated relative to the organizations SWOT,
     and after this we develop goals and objectives.

    These 8 – 12 items should be focused, concise,
     measureable, attainable, agreed upon, pertinent,
     relevant, and vision and mission based.

Strategic Priorities (cont.)
   They are the actions that the organization needs to take to
    achieve its vision and mission.
   Should list between eight and 12 Strategic Priorities.
   These are high-level, but are still measurable. Detailed
    goals and objectives will come from the Strategic Priorities
      “We will increase market share by 15% in textiles.”

      “We will increase enrollment by 20% over 3 years.”

      “We must double our literature distribution volume over
       the next 2 years.”
Define Measurements
   Every Strategic Priority must have one or more metrics that
    demonstrate forward progress on the Strategic Priority.
   The metric is a measurement called a Key Performance
    Indicator, or KPI.
   The KPI is a way of determining if the organization is
    reaching its Strategic Priorities. The KPIs need to be well
    defined, tangible measurements that are reviewed and
    updated as new information becomes available.
      This is one reason, among many, that the Strategic Plan
       is not a document to be created and then placed on a
       shelf. It must be referenced, updated, analyzed, and
       faced on a regular basis – at least quarterly.
The SWOT Analysis is your present situation.
    Use organizational Strengths as leverage.
    Confront Weaknesses and make decisions based on
     what’s best for the organization.
    Brainstorm Opportunities in light of resources.
    Mitigate risks, reduce Threats to a manageable level.

 Perform SWOT for each Department or Functional Group.

    Benchmark your industry - look for niches, advantages.
       Information, information, information - get all you can.

    Communicate, communicate, communicate - often!!

    Vision and Values are the boundaries.

    Ensure decision-makers are on-board.


 SWOT Terms and Applications
     Strengths - What does the organization possess that
      can be accessed and leveraged to fulfill the mission?

     Weaknesses - What weaknesses does the organization
      have to overcome to fulfill the mission?

     Opportunities - What opportunities exist that should be
      converted into Objectives to fulfill the mission?

     Threats - What threats exist that could prevent the
      organization from fulfilling its mission?
SWOT Analysis
   The SWOT Analysis helps in understanding the
    environment in which the organization operates.

   The SWOT Analysis identifies immediate situations that
    must be dealt with, particularly in the areas of
    Weaknesses and Threats.

SWOT Guidelines
    Leaders of the key organizational functions should
     conduct SWOT analyses.

    Encourage openness and candor.
       Not a personal attack.

       Identification of issues is the first step to resolving


     The starting point of any goal is the department Mission as
      well as its SWOT Analysis.
     Short Term
        Up to 6 months

     Mid Term
        6 months to two years

     Long Term
        Two to Five Years

  Details of the goal increases as the term decreases.        27
   Action Items derived from the goals of the department.
   Tasks should be S.M.A.R.T.
      Specific - Written in terms of a “deliverable.”

      Measurable - Quantifiable, clear when complete.

      Accountable - Someone is responsible.

      Relevant - Supports the Vision.

      Timed - Has an ECD (estimated completion date).

Supporting Plans
    Some of the supporting structure for the Strategic Plan is
     itself detailed and often requires its own cohesive plan,
     e.g. Various Plans
         Financial * Marketing * Engineering * Operations * Sales
         Publications * Human Resources * Safety * Development

    These Plans support the Strategic Plan, they provide
     necessary market, infrastructure and viability provisions.
     The Strategic Plan can be shorter when the individual
     department plans are detailed.
References for Various Supporting Plans
   Marketing Plan
       Marketing Plan

   Operating Plan (Business Plan)
       Business Plan
       Templates

   Financial Plan
       Terminology
       Accounting Equation
       Income Statement
       Balance Statement

 What Departments Exists?
     Functional
        Literature Distribution, Admissions, Facilities,
         Training, etc.

     Departmental
        Sales and Marketing, Engineering, Operations,
         Customer Service, etc.

     Positional
        Northwest Regional, Washington State, Rocky
         Mountains, East Coast, etc.                        31
What’s Needed?
    Gaps in talent? Facilities?
    Lack of representation in key localities?
    Position unfilled? (e.g. Director of Development needed to
     be hired?)
    What’s missing?
       Brainstorm…

       Benchmark…

    What’s unnecessary or inconsistent with the strategy*?
       Products, personnel, departments, committees…..

       * Remember George Allen and the Christmas cards?
Identify Key Organizational Resources
    Department Heads
    Directors
    Key Managers
    Key Influencers
    Facilitators, Consultants

     Whatever stage the Strategic Planning Team is in,
     the persons involved in the process must have full
     decision-making authority.
7- Vision, Mission, Values Examples

 Over the Next Few Slides, Ask Yourself...

        Can it be easily memorized?
        Does it communicate to the me?
        Is it inspiring?
        Would I want to be a part of this organization?
        Would I invest in this organization?

  Vision and Strategy - Aerospace Business

      We are the industry leader
       We are the industry leader
    in precision sensor technology
     in precision sensor technology
  providing best-value products and
  providing best-value products and
      services through passionate,
      services through passionate,
   empowered people who deliver
    empowered people who deliver
    excellent financial results and
    excellent financial results and
continuously re-invent the business to
continuously re-invent the business to
      ensure customer success.
       ensure customer success.

Vision and Strategy - Ministry
                                 “Life VEST”

Vision and Values - Fitness Organization

   Values                Mission

Vision and Mission Statements - Hospital
    Vision Statement
     Northwest Hospital is a facility where skilled professionals, providers, and staff develop and practice the most
     current, safe ways to heal patients. We seek to be a leader in clinical practices, care pathways, and research
     which maximize recovery with minimal invasiveness. We provide for the basic health and specialty needs of those
     who live and work in our regional area, and those who seek treatment here. As guardians and protectors of
     health, we actively seek opportunities to improve access, promote wellness, and increase the knowledge and
     ability of patients to take responsibility for their health. All of our success is due to the contributions of exceptional
     individuals who are dedicated to the concept of working together to provide effective, affordable care in a safe,
     comfortable, trust-promoting environment.

    Mission Statement
     Northwest Hospital is committed to providing exceptional health care. Our first priority is meeting the health needs
     of people in our community. We seek to serve patients throughout their lifetimes. Our responsibility is to provide
     the resources, facilities, and opportunity to focus our clinical expertise and services to provide superior care in
     wellness, illness, and emergencies. Our job is to make Northwest Hospital the health care provider of choice by
     our unparalleled expertise, minimally invasive treatments, cost-effective care, medical research, and easy,
     supportive access.

                                Can you memorize this?                                                                        38
Mission and Motto - Hospitality Industry
    The Ritz-Carlton Hotel is a place where the genuine
     care and comfort of our guests is our highest

    "We are ladies and gentlemen serving ladies and
     gentlemen." This motto exemplifies the anticipatory
     service provided by all staff members.

Company Mission and Department Purpose
    Company Mission     Department Purpose


 Fast Track Plan
    Develop an organizational Vision. Get buy-in from
     influencers. Ensure the Vision fits with your Values.
    Define your Strategy to achieve the department Mission
     (which supports the Vision) while sustaining the
     organization financially. List Strategic Priorities.
    Assess where you are by performing a SWOT Analysis for
     each major part of the organization. Key it to the Vision.
    Confront Weakness and mitigate Threats immediately.
       Assure organizational viability and sustainability.

       “Get Help” if you cannot do this with existing resources. 41
Fast Track Plan (cont.)

    Leverage Strengths and recognize Opportunities to
     advance the Mission and achieve the Strategic Priorties.
    Set goals based on the Strategy and KPIs and SWOT
     Analysis. Horizon typically up to 5 years.
    From department goals, set SMART objectives.
    Diagram the organization’s structure. Is it sufficient?
     What needs to be added? Terminated? Modified?

Six-to12-Month Implementation Plan
   The following sections should be completed in 60 days
    elapsed time; 10 hours of meeting time (2-1/2 hours per
    week, every-other week, for eight weeks) or 30 days
    elapsed time with weekly meetings.
      Vision and Values (use a facilitator)

      Document Strategic Priorities/KPIs; conduct SWOT
      Goals (short, mid, long-term)

      Objectives - Action Items, Operational Plan

      Objectives - Marketing Plan, Financial Plan

      Identify reqd. departments, Personnel, Infrastructure
Approach for Strategic Planning
   This is An approach, not THE approach. Use leadership
    skills in navigating this process. Be flexible. Some tasks
    overlap. Some definitions blur with others our there. Don’t
    stress out, keep calm and produce a document that will
    guide your team now and into the future.

   Be very clear on your Vision and Values. The goal is
    three-fold: Know what you want to do, energize others
    who’ll join in to support the Vision, remain financially viable.
    Responsibility: Leader of the Organization.
Approach for Strategic Planning (cont.)
   Define Strategy and Strategic Priorities (with KPIs) that
    supports the vision as well as ensuring organizational
    viability along the way. Responsibility: Key Organizational
    Leaders. Leader of the Organization has Oversight.

   The SWOT Analysis is a key element and needs to be
    treated as such. It stems from the Vision, etc. and sets the
    tone for the goals and objectives. Be honest!
    Responsibility: Leader of the Organization for Global
    Issues; Directors and Managers for Their Departments
Approach for Strategic Planning (cont.)
   Intermission! If an outside investor, Board, or other
    interested party is involved, show them what you have
    now to ensure this is what they want. Get their buy-in to
    your direction. After their approval, (or if no outside party is
    involved) roll-out the plan to your organization.
    Responsibility: Leader of the Organization.

   Establish Goals extending out to five years. Goals that
    can be completed within one year should be further
    refined in the Objectives section. All goals support the
    Mission. Responsibility: All key leaders, all department
    leaders. Oversight by the Leader of the Organization.          46
Approach for Strategic Planning (cont.)

   Objectives are highly-refined goals. They are written to
    the SMART model. They should be prepared by key
    leaders in an easy-to-read format. They should be
    reviewed and updated often. Responsibility: Department
    Leaders (managers, department heads).

   Analyze your Department Infrastructure. Identify their
    leaders. Any gaps? Skill sets needed? Brick-and-Mortar
    resources, facilities required... Responsibility: Leader of
    the Organization and High-Level Leaders.
Roles for Strategic Planning Team Leaders
   The Leader of the Organization sets the tone and the pace.
    He initiates high-level activity, especially Vision and Values.

   Mid-level activity is handled by key leaders within the
    organization. Includes SWOT and Goals.

   The implementation of the Strategic Plan is carried out by
    Low- and Mid-Level managers and leaders. Includes Goals
    and Objectives.

    If you have to leave the room to get approval for a decision,
    then the necessary people are not in the room to begin with.
Closing Comments
   A Strategic Plan (STRAP) presentation should be concise,
    clear, easy to follow.
   The reviewer should be confident that you know where you
    are, where you’re going, and how you’re going to get there.
   STRAP can change based on environmental influences.
    Vision and Values do not change.
   Any plan (STRAP, Operating, Marketing, Financial) can and
    should be modified and updated as new information arrives.
   Clear metrics demonstrating success and achievement
    within allotted timeframes is the clearest indicator of how
    good the STRAP is and how well it’s used over time.         49
Ongoing Accountability

   Summarize the Strategic Plan onto one page!
      Vision, Values, Key Departments, Leaders, Top three
       high-level SWOT category items (focus on them), top
       three goals, top three metrics per goal.
      Repeat one-page model for each department with its
       mission, SWOT (top three in each category), top three
       goals and top three objectives per goal. FOCUS!

   Post the organization’s STRAP and any supporting
    department STRAP on the wall. Refer to it weekly. Update
    as goals and objectives change or are completed.         50

 NOW Can You Answer These 10 Questions?
     What is a Strategic Plan?
     What are the three purposes of a Strategic Plan?
     What is “fixed” and what can change in a Strategic Plan?
     How Long Should It Take to Produce?
     Who Is Involved?
     Why do you need a Vision Statement?
     What are examples of Organizational Structure?
     What are the main components of a Strategic Plan?
     What does the Operational Plan do?
     What does SWOT mean?                                    51
  Five Year      Create Strategic Plan

                                          Conduct SWOT           and
                                             Analysis        Departmental
                                                                                   Analyze         Staff,
   Virtually        Define Vision,                                              Organizational   Facilities,
   “Fixed”         Values, Mission,                                               Structure         etc.

                                          Establish Goals      Based on
                                          and Objectives      St. Priorities
                                                              and SWOT
                                                                               Create One-Page    Post in
                   Define Strategic
  Change as                                                                      Department      Prominent
                  Priorities and Key
 needed to fit                                                                     STRAPS        Locations

                                                               Needed for
                                         Create Supporting      Finance,
                                               Plans           Operations,
                                                               Sales, etc.

3 Document Categories: Organization STRAP (one); Supporting
Department Plans (numerous); Department STRAP (numerous)

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